PWAV Cuts FYQ2 View, Reiterates Year View

By Tiernan Ray

Shares of wireless chip maker Powerwave Technologies (PWAV) are down 21 cents, or almost 8%, at $2.56 after the company this afternoon cut its outlook for the fiscal Q2 ending this month, citing global macroeconomic concerns.

The company now expects to generate revenue of $168 million to $170 million, below a prior forecast of $170 million to $180 million. The Street has been expecting $170 million.

Back on May 5th, when the original forecast was offered, the company said that although it didn’t customarily make quarterly forecasts, it felt confident in those numbers “due to the current results and the fact that we have been seeing an increase in demand for our products.” It also said at the time that, “We are confident that the demand should continue to improve throughout this year.”

Last quarter’s results disappointed Street estimates after the company experienced delays in a new chip product intended for faster “LTE” cellular data service.

CEO Ronald Buschur remarked in today’s release that the company continues to believe it can make a prior forecast for $650 million to $680 million for the full year.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.